Please help! Show all calculations and formula. in each step. Thank you! PB value not PE. United Healthcare, a health ma

[answerhappygod]

Please help! Show all calculations and formula. in each
step. Thank you! PB value not PE.
United Healthcare, a health maintenance organization, is
expected to have earnings growth of 30% for the next five years and
6% after that. The dividend payout ratio will be only 10% during
the high growth phase, but will increase to 60% in steady state.
The stock has a beta of 1.65 currently , But the beta is expected
to drop to 1.10 in steady state. (The Treasury bond rate is
7.25%)
a. Estimate the price-book value ratio for United Healthcare,
given the inputs as given.
b. How sensitive is the price-book value ratio to estimates of
growth during the high growth period?
c. United Healthcare trades at a price-book value ratio of 7.00.
How long would extraordinary growth have to last (at a 30% annual
rate) to justify this PBV ratio?